Duffy rips CFTC oversight, Novig posts $125M debut, horse racing hit with another insider trading case. By Lara Johns Updated: Aug 28, 2026 CME Group CEO Terry Duffy publicly criticized the Commodity Futures Trading Commission's oversight of prediction markets this week, telling the agency's new advisory committee that unchecked contract approvals are hurting the industry. The comments came during a week that also brought a fast start for prediction market newcomer Novig, a second insider trading case tied to horse racing, and a Florida lawsuit against sweepstakes casino operators. Here is what these developments mean for US bettors and casino players following the sports betting and prediction market space heading into football season. Duffy calls out CFTC over prediction market contracts. Terry Duffy criticized the CFTC's handling of prediction market contracts during the agency's first Innovation Advisory Committee meeting on Thursday, August 20, arguing that regulators have let too many risky contracts through without proper review. Duffy pointed out that the CFTC has not rejected any of the more than 2,500 self-certified contracts filed over the past two years. That list includes the Trump-mention markets that the president's former teleprompter operator profited from, along with several player prop-style sports contracts that critics say resemble traditional sports betting more than financial hedging tools. "This is not good for our industry. It's horrible for our industry. We are not a bunch of carnival barkers at a circus," Duffy said at the meeting. CFTC Chair Mike Selig and Kalshi co-founder Luana Lopes Lara pushed back on Duffy's characterization, and the discussion turned into a pointed exchange between Duffy and Lara. The clash highlights a growing rift between traditional derivatives exchanges and the newer prediction market platforms that have expanded rapidly into sports outcomes over the past two years. Horse racing faces a second insider trading case in two weeks. Horse racing integrity is back in the headlines. After suspicious bets were cashed on suspiciously won races at Saratoga and Monmouth Park earlier this month, the Horseracing Integrity and Safety Authority (HISA) brought fraud and data access charges against Marshall Gramm, a respected horse player, owner, and college economics professor. HISA maintains a database of racehorse health records that only a horse's primary owner, HISA-approved veterinarians, and state racing regulators can access. The authority alleges that during six weeks this spring, Gramm accessed records for horses he did not own while competing in handicapping contests and buying horses through claiming races. Customized past performance charts built from that confidential data also turned up on social media. "Our evidence showed that Mr. Gramm used essentially an automated and invisible browser to download records at scale, while employing methods to avoid detection," HISA CEO Lisa Lazarus said. Gramm agreed to a provisional suspension on August 24, one day before HISA's deadline for his formal response. Under the agreement, he must divest his ownership interests in his horses, cannot claim horses, and cannot go to a racetrack while the case proceeds. He has also returned handicapping contest winnings and said he is working to return purse money. Gramm withdrew from the 2027 National Horseplayers Championship, a $5.5 million contest in Las Vegas, and the National Thoroughbred Racing Association suspended him from future events. The Jockey Club also revoked his membership. HISA's fraud and data access hearings are scheduled for September 14 and 16, and Gramm still faces a potential lifetime ban depending on the outcome. Novig's prediction market debut tops $125 million. Novig posted over $125 million in trading volume during the first week of its prediction market exchange, a total that outpaced the opening-week numbers of Kalshi, Polymarket US, Underdog, and DraftKings' DKeX. The debut puts Novig at No. 4 among US prediction market operators by volume. Parlays accounted for roughly a third of the first week's volume, with baseball driving most of the action during one of the slowest stretches of the US sports calendar. Novig, which shifted its user base over from a sweepstakes platform, expects volume to climb significantly once football season gets underway. Florida sues sweepstakes casino brands and payment processors. Sweepstakes casinos drew regulatory attention of their own this week. Florida has not passed a law banning the dual-currency platforms, but Attorney General James Uthmeier is suing sweepstakes operators Stake and VGW directly. The lawsuit also names payment processors that work with the two companies, a move aimed at cutting off the flow of money to sweepstakes operators in the state. What it means for US bettors. Prediction markets keep growing fast, and this week's news shows the regulatory picture around them is far from settled. Duffy's comments add a prominent industry voice to concerns about how thoroughly the CFTC vets new contracts, while Novig's strong debut shows demand for these products remains high heading into football season. On the horse racing side, the Gramm case is a reminder that data protection and access controls matter in any wagering market, and that governing bodies are willing to act when integrity is compromised. Bettors weighing new platforms, whether prediction market exchanges or traditional sportsbooks, should stick to licensed, regulated operators and stay alert to how each platform is overseen in their state. Play responsibly. Sports betting and prediction market trading should stay entertainment, not a source of income. Set a budget before you bet, only wager money you can afford to lose, and avoid chasing losses. If gambling stops feeling fun, free and confidential help is available 24/7 through the National Council on Problem Gambling at 1-800-GAMBLER.

Novig volume rapidly tops some big prediction market names. Posted on: August 25, 2026, 06:13h. Last updated on: August 25, 2026, 06:13h. Key points. * Novig volume is already pacing ahead of rivals such as Rothera and Underdog * Its exchange hasn't even been live a month * The fast start is impressive because August is typically a slow sports month As has been widely documented, Novig's sports-focused prediction market, which rolled out nationwide earlier this month, is off to a fast start. So much so that average daily volume on the platform is already surpassing turnover on rival exchanges, such as Rothera and Underdog. That's noteworthy because Rothera, in which Robinhood Markets (NASDAQ: HOOD) is a major investor, and Underdog are two of the biggest success stories among upstart prediction market operators. The Nadex Exchange highlighted in the chart above clears trades for multiple prediction market operators, including DraftKings, Fanatics and FanDuel, among others. Strong start for Novig, but competition is intense. There's no denying that Novig is off to a strong start with the nationwide rollout of its sports-centric exchange and that stout debut is all the more impressive when considering August is one of the most lethargic months on the U.S. sports betting/trading calendar. But as EKG's Allen points out, Novig and its upstart peers have a lot of work to do when it comes to catching up to the two dominant prediction market operators on the turnover front. Those two exchanges combine for about $1.3 billion in average daily volume, far exceeding the tallies notched by smaller rivals, according to the analyst. Novig has some advantages, including a focus on sports event contracts and established competencies in the sports peer-to-peer exchange realm, potentially making it ideally situated to capture market share in the event contract space. Following a Series B funding round that concluded in February, Novig is valued at $500 million in private markets, or halfway to the unicorn label. Novig bullish on near-term growth. With Week 0 of college football kicking off this week, the 2026 football season is officially here and that's prime time for prediction markets and sportsbooks to strut their stuff. Novig CEO Jacob Fortinsky believes his company is up to the challenge. "Our growth will continue to be product-led, but we're going to become much more aggressive on user acquisition and brand awareness," he said in a recent interview on the 4th Quarter podcast. "I'd be surprised if, in the next two months, any sports fan didn't know who Novig was." Novig is a financial sponsor of that podcast. Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at [email protected].

Novig, a sports-focused prediction market founded by Jacob Fortinsky, has set its minimum user age at 21, higher than competitors Polymarket and Kalshi, which allow 18-year-olds. The platform launched last week, processing $18 million in trading volume on its first day. The age restriction responds to concerns about younger participants' susceptibility to risky behaviour, including lobbying from the NCAA. Novig's new responsible trading framework also bans marketing to minors and prohibits adverts claiming no risk or targeting those with financial troubles. The company faces regulatory challenges. Within three days of launching, Novig sued New York, Massachusetts, New Mexico, and Washington to block them from applying gambling laws to its federally regulated exchange. Recent court decisions have largely favoured state attorneys general, though legal experts anticipate the matter could reach the US Supreme Court.